CannPal Animal Therapeutics (ASX: CP1) shareholders voted overwhelmingly in favour of allowing cannabis company AusCann (ASX: AC8) to acquire the company for $17.5 million at a meeting yesterday.
If the Supreme Court of Western Australia gives the merger the green light the deal will be done, seeing the two companies become a combined entity and giving CannPal more resources to accelerate growth.
Importantly, CannPal hopes the merger will give them the financial resources and expertise to boost the commercialisation of its cannabis-based animal health products.
Meanwhile, competitor cannabis companies have had their own wins today, with Little Green Pharma (ASX: LGP) securing $5 million in a share purchase plan, and Creso Pharma (ASX: CPH) announcing a major distribution deal for its products.
Under the deal, CP1 shareholders will see their shares acquired for $0.18 per share.
CannPal shareholders will also be offered 1.3 new fully paid ordinary shares in AC8 for every fully paid ordinary share currently held.
When the Scheme of Arrangement was announced in November last year, CannPal chair Geoff Star said the two companies were complementary, with the merged entity to benefit from a strengthened leadership team, shared staff, and intellectual property and procurement synergies.
"There is great logic to combining CannPal Animal Therapeutics with AusCann Group with the new business having enhanced capability to exercise the potential for new and stronger commercial pathways," Star said.
"The synergies around local and overseas market knowledge and research and development know-how will enable faster to market solutions.
"It represents a unique and compelling value proposition for both companies."
For AusCann chairman Max Johnston, the deal will also accelerate the group's development of its cannabinoid-based medicines for human consumption.
"The combined business is expected to have the financial resources and technical expertise to accelerate growth, commercialisation and market penetration of its pipeline products in Australia and offshore," Johnston said in November 2020.
Shares in AusCann are up 3.33 per cent to $0.16 per share at 12.08pm AEDT.
LGP bags $5 million in SPP
In other industry news, Little Green Pharma (ASX: LGP), a cannabis grower and cannabis oil manufacturer, has secured $5 million in a share purchase plan today.
It comes on the back of a $22 million raise, with proceeds of both injections to be used for boosting cannabis production and pushing internationally.
"We're highly encouraged by the strong support shown by new and existing shareholders for Little Green Pharma," LGP managing director Fleta Solomon said.
"I'd like to thank our existing shareholders for their continued support and would like to welcome new investors to the Little Green Pharma family."
Creso cuts into US and Canada with new distribution deal
A new distribution deal signed by cannabis product developer Creso Pharma (ASX: CPH) will see the company's products distributed in the US and Canada, with a partner that specifically targets the athletic community.
The non-binding letter of intent (LOI) with ImpACTIVE will see the latter distribute Creso's suite of hemp and CBD-based health products CannaDOL and cannaQIX.
Canada-based ImpACTIVE was founded by current and former high-profile athletes who have struggled with injury and wanted to provide alternative treatment routes to the athletic community.
The distributor has its own CBD-based products designed to reduce muscle and joint inflammation without the use of narcotics or prescription pharmaceuticals.
In addition, Creso will become an authorised distributor of ImpACTIVE's CBD-based roll-on product range, with an initial focus on Switzerland after an April 2021 launch.
"We are very proud to enter the sports and recreational market with such a high calibre partner as ImpACTIVE," Creso commercial director Jorge Wernli said.
"This LOI is important for Creso Pharma, as it further broadens our international footprint and provides another large market opportunity.
"We look forward to working with ImpACTIVE to ensure all products are well received in Europe and North America, and also leveraging their innovative product range to further add to the company's growing sales profile."Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.
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